Asia equities

Asia equities insights, analysis, themes, and market outlook

Asia equities: five reasons to invest in 2021

#1 Asia is expected to see faster economic growth than the US and EU in 2021.

#2 Growth in Asian consumer demand - particularly for premium goods – is expected to remain strong.

#3 Many global tech & IT leaders are emerging from Asia.

#4 Financial sectors remain underdeveloped in many Asian countries, and we see growth potential in the coming years.

#5 Valuations for Asia equities are relatively inexpensive.

Asia equities: the outlook for 2021

Asia equities offer large opportunities for active returns because of two key factors: market inefficiencies and long-term fundamental trends that create winners and losers. A good active manager capable of spotting winners can create a lot of value for clients’ portfolios.

Geoffrey Wong, CFA, Head of Emerging Markets and Asia-Pacific Equities


Asia equities: three investing trends for 2021

Long-term trends within Asian consumption, technology and financial services offer great opportunities for Asia equity investors. 


Asia small-and-mid caps: thinking small, investing well

Asia small and mid-cap equities are worth a closer look because:

  • The Asia small and mid cap equity asset class is under-researched;
  • Investors can play more focused themes via Asia small cap stocks;
  • Asia small and mid-caps can complement large-cap stock portfolios

Asia equities: FAQS, facts, and figures

#1 Are Asian equities cheap?

Valuations for Asia equities are relatively inexpensive and generally still below the US, according to price-earnings data at the end of February 2021.

#2 How much do countries in Asia contribute to the global economy?

Asian countries contributed 43.97% to global gross domestic product (GDP) in 2020, according to calculations by the International Monetary Fund (IMF). Asia’s contribution to global gross domestic product is forecast to grow from 43.97% in 2020 to 47.07% in 2025, according to IMF estimates as of October 2020.

#3 How fast will China grow in 2021 and 2022?

China‘s economy - the second largest in the world - will grow by 8.1% y-o-y in 2021 and by 5.6% y-o-y in 2022, according to forecasts made in January 2021 by the International Monetary Fund.

China: GDP Growth (%-YoY), 2019-2022 (f)

Source: IMF World Economic Outlook Database, October 2020.


Asia’s changing role in the global economy

How much does Asia contribute to the global economy. How much will Asia contribute to the global economy in 2025?


 

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